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Inaccurate headline. Recipients of H1B work visas are not legal immigrants. H1B is a temporary non-immigrant work permit.
Yes, technically what you say is true... But isn't somebody who is legally working & settled in the US for more than 10 years an immigrant?
If they've been here more than 10 years, that means they stayed through the Great Recession, when there was no genuine shortage of domestic talent in any category that warranted H-1B in the first place.
Reforming h1b is a must. We should replace the current h1b lottery system with a salary based auction system. So whichever company pays the most salary gets the visa. Of course, we have to normalize for location & exempt nonprofits. (otherwise, rich bay area companies will get all the visas).

In the long run, we should go for a point-based immigration system like Canada.

No. They knew the terms of the deal when they signed the papers. It's a work permit. If I buy a ten year software license I don't magically own it in perpetuity by virtue of having used it a long time.
Its sad people don't show the same empathy for legal immigrants they show for undocumented immigrants!
No, the h1b visa comes with an option to apply for permanent residency (Green card). So the comparison here is the ten-year software license comes with an option to buy the lifetime license.

Anyway, the issue here is that the archaic laws discriminate based on race (country of origin) which is both unfair and doesn't make sense for the category (employment-based visa).